While they are legal from a building department view point, if there are complaints from neighbors about you renting it long term, it could create issues with zoning.  

Efficient negotiations secured the property for $93,000 on favorable terms.

These homeowners also are attempting to cash flow their home over pretty rough mortgage terms. 

And the answer to that is yes, just not through the foreclosure process, you would use a different process.Some states call things by different terms, but look up performance deed, or deed of trust to secure performance, or some verbiage along those lines. 

We have great long term residents in our POH rentals and do very well financially with them. 

This would consolidate your debt into a single mortgage with better terms.

Efficient negotiations secured the property for $155,000 on favorable terms.

Does anyone know of a lender in TX that has more loose rental terms? 

The 6 homes would be kept long term.

That will help determine if Short term capital gain (ordinary income) or Longterm capital gains.